Possessory Pledge as a Mechanism for Securing Public Contracts in Algeria: Regulations and Issues

Abstract

Public procurement represents an important mechanism for the development of the state’s economy and for encouraging economic investment and foreign partnership. The possessory pledge mechanism is considered a fundamental tool regulated by the Algerian legislator under the provisions of public procurement law, in order to facilitate the financing of public contracts in cases where the contracting authority delays the payment of its dues to contractors after the full execution of the contract’s subject matter. This mechanism serves to guarantee debts arising or expected to arise from the execution of the contract, as well as loans granted within the framework of its financing.
Accordingly, this study aims to identify and address the various procedural formalities and legally established controls governing the possessory pledge as a financing instrument for public procurement in Algeria.